If we look at BTC's Daily chart, we can see an almost obvious Inverse Head and Shoulders position forming - coming up on that right edge of that final right shoulder (from our perspective), we may be led to believe that the shoulder will, in typical H&S fashion, continue Up, up, up... But I don't believe this will be the case.
By my estimation, we are still a bit too overbought in BTC, and have some ways to go down. This set up would be perfect to build up to the supposed run up from the H&S, eating up juuuust as much liquidity as possible before moseying back down. Which is kind of what I expect to occur. I can see us shooting up to juuust below around that pink line (the 314 day MA), at around 7900; but instead of busting through, kind of following along the bottom edge of that line before continuing back down to the 6K range.
There are a couple of reasons why I think we'll go lower still. A) If we look on BTC's weekly and monthly charts, it is obvious that coin has remained in Overbought territories much longer than the converse. It seems due for correction. B) If we look at the pink line, once the price drops through it, it might come back close again, but it has never crossed back too far over before pushing lower. Fundamentally speaking, we are also well aware of the recent Plus Token scam, and the fact those folks still hold thousands of Bitcoin waiting to be dumped. And as with most of these cases, it's likely to occur sooner rather than later, imo.
Because of these reasons - the scams, the oversold-ness, and the chart setup - a "fake out" to the immediate upside (i.e., the rejected H&S) to around $7900, then a draw further back down toward 6K is my current estimation for BTC.
That's all I know!
tl;dr: Long in the immediate, up to 7900; then short
The Paid Pipper
Donations: BTC: 17NMvqjzNqjLrANAU6YPdfUa1kmnzKDwhp
I'd also like to thank Skinny Moon Hunter for the idea to use the 314 day MA. Ya'll should check him out, he's on youtube (www.youtube.com/chan...RW8q1qwjhnlfX1HciQpg)
By my estimation, we are still a bit too overbought in BTC, and have some ways to go down. This set up would be perfect to build up to the supposed run up from the H&S, eating up juuuust as much liquidity as possible before moseying back down. Which is kind of what I expect to occur. I can see us shooting up to juuust below around that pink line (the 314 day MA), at around 7900; but instead of busting through, kind of following along the bottom edge of that line before continuing back down to the 6K range.
There are a couple of reasons why I think we'll go lower still. A) If we look on BTC's weekly and monthly charts, it is obvious that coin has remained in Overbought territories much longer than the converse. It seems due for correction. B) If we look at the pink line, once the price drops through it, it might come back close again, but it has never crossed back too far over before pushing lower. Fundamentally speaking, we are also well aware of the recent Plus Token scam, and the fact those folks still hold thousands of Bitcoin waiting to be dumped. And as with most of these cases, it's likely to occur sooner rather than later, imo.
Because of these reasons - the scams, the oversold-ness, and the chart setup - a "fake out" to the immediate upside (i.e., the rejected H&S) to around $7900, then a draw further back down toward 6K is my current estimation for BTC.
That's all I know!
tl;dr: Long in the immediate, up to 7900; then short
The Paid Pipper
Donations: BTC: 17NMvqjzNqjLrANAU6YPdfUa1kmnzKDwhp
I'd also like to thank Skinny Moon Hunter for the idea to use the 314 day MA. Ya'll should check him out, he's on youtube (www.youtube.com/chan...RW8q1qwjhnlfX1HciQpg)
Comment:
*Edit: should be: "...Because of these reasons - the scams, the overBOUGHT-ness..." not "oversold-ness" :)
